Housing loan law will spark transformative shift in Kuwait’s banking sector: Fitch

Gilbert Hobeika, Head of Banking at Fitch Ratings, described Kuwait’s proposed housing loan law as a potential game-changer for the country’s banking industry, predicting a surge in economic activity and credit expansion if implemented.

In an interview with Al Arabiya Business, Hobeika emphasized the scale of the potential impact: “Kuwait has over 1.5 million citizens. If just 5 to 10 percent of them access housing loans, this could significantly expand banks’ loan portfolios — possibly by 20 to 40 percent.”

While Fitch currently projects loan portfolio growth in Kuwait to remain around 7 to 8 percent, Hobeika noted that approval of the law could push that rate to as high as 30 to 40 percent, marking an unprecedented boost in credit activity across the sector.